U.S. Identifies Vast Riches of Minerals in Afghanistan

[John317]

Tyler Hicks/The New York Times

A bleak Ghazni Province seems to offer little, but a Pentagon study says it may have among the world’s largest deposits of lithium.

The previously unknown deposits — including huge veins of iron, copper, cobalt, gold and critical industrial metals like lithium — are so big and include so many minerals that are essential to modern industry that Afghanistan could eventually be transformed into one of the most important mining centers in the world, the United States officials believe.

An internal Pentagon memo, for example, states that Afghanistan could become the “Saudi Arabia of lithium,” a key raw material in the manufacture of batteries for laptops and BlackBerrys.

The vast scale of Afghanistan’s mineral wealth was discovered by a small team of Pentagon officials and American geologists. The Afghan government and President Hamid Karzai were recently briefed, American officials said.

While it could take many years to develop a mining industry, the potential is so great that officials and executives in the industry believe it could attract heavy investment even before mines are profitable, providing the possibility of jobs that could distract from generations of war.

“There is stunning potential here,” Gen. David H. Petraeus, commander of the United States Central Command, said in an interview on Saturday. “There are a lot of ifs, of course, but I think potentially it is hugely significant.”

The value of the newly discovered mineral deposits dwarfs the size of Afghanistan’s existing war-bedraggled economy, which is based largely on opium production and narcotics trafficking as well as aid from the United States and other industrialized countries. Afghanistan’s gross domestic product is only about $12 billion.

“This will become the backbone of the Afghan economy,” said Jalil Jumriany, an adviser to the Afghan minister of mines.

American and Afghan officials agreed to discuss the mineral discoveries at a difficult moment in the war in Afghanistan. The American-led offensive in Marja in southern Afghanistan has achieved only limited gains. Meanwhile, charges of corruption and favoritism continue to plague the Karzai government, and Mr. Karzai seems increasingly embittered toward the White House.

So the Obama administration is hungry for some positive news to come out of Afghanistan. Yet the American officials also recognize that the mineral discoveries will almost certainly have a double-edged impact.

Instead of bringing peace, the newfound mineral wealth could lead the Taliban to battle even more fiercely to regain control of the country.

The corruption that is already rampant in the Karzai government could also be amplified by the new wealth, particularly if a handful of well-connected oligarchs, some with personal ties to the president, gain control of the resources. Just last year, Afghanistan’s minister of mines was accused by American officials of accepting a $30 million bribe to award China the rights to develop its copper mine. The minister has since been replaced.

Endless fights could erupt between the central government in Kabul and provincial and tribal leaders in mineral-rich districts. Afghanistan has a national mining law, written with the help of advisers from the World Bank, but it has never faced a serious challenge.

“No one has tested that law; no one knows how it will stand up in a fight between the central government and the provinces,” observed Paul A. Brinkley, deputy undersecretary of defense for business and leader of the Pentagon team that discovered the deposits.

At the same time, American officials fear resource-hungry China will try to dominate the development of Afghanistan’s mineral wealth, which could upset the United States, given its heavy investment in the region. After winning the bid for its Aynak copper mine in Logar Province, China clearly wants more, American officials said.

Another complication is that because Afghanistan has never had much heavy industry before, it has little or no history of environmental protection either. “The big question is, can this be developed in a responsible way, in a way that is environmentally and socially responsible?” Mr. Brinkley said. “No one knows how this will work.”

With virtually no mining industry or infrastructure in place today, it will take decades for Afghanistan to exploit its mineral wealth fully. “This is a country that has no mining culture,” said Jack Medlin, a geologist in the United States Geological Survey’s international affairs program. “They’ve had some small artisanal mines, but now there could be some very, very large mines that will require more than just a gold pan.”

The mineral deposits are scattered throughout the country, including in the southern and eastern regions along the border with Pakistan that have had some of the most intense combat in the American-led war against the Taliban insurgency.

For the rest of the story & pictures:

http://www.nytimes.com/2010/06/14/world/asia/14minerals.html?no_interstitial

[karl]

They can't admit that the real gold mine in Afghanistan is the opium poppy.

[phkrause]

They can't admit that the real gold mine in Afghanistan is the opium poppy.

Who can't mention that Karl? As far as I know that's been known for many years. Maybe they just don't want to mention that in the article. Just a thought.

[nuff sed]

The best Lapis Lazuli, which is a blue gemstone, comes from Afghanistan. Chile also has it but it is not the same quality. nuff sed

[karl]

Originally Posted By: karl

They can't admit that the real gold mine in Afghanistan is the opium poppy.

Who can't mention that Karl? As far as I know that's been known for many years. Maybe they just don't want to mention that in the article. Just a thought.

Untied Nation's Office of Drugs and Crime ranks Afghanistan as the world's largest producer of opium and heroin.

Drugs, money, power.

These are powerful, powerful incentives for lots of thing that don't make sense at first blush.

[Dr. Shane]

Well, with all those minerals over there, this could be yet another foreign policy success for President Obama.

[karl]

Total mining revenues for the entire planet are about $150 billion annually. Total illegal drug revenues are very conservatively estimated at more than $400 billion.

Which do you think is easier for the average Afghani - growing poppium or starting up a mining operation?

(By the way, let me point out again, for all of you who are believers in the goodness of government; there is NO WAY to deal with more than $400 billion dollars annually without the complicity of government on a very significant scale and the complicity of banking on a very significant scale.)

[phkrause]

(By the way, let me point out again, for all of you who are believers in the goodness of government; there is NO WAY to deal with more than $400 billion dollars annually without the complicity of government on a very significant scale and the complicity of banking on a very significant scale.)

I agree with most of your post, I disagree that there are any here that are believers in the goodness of government. There are times that they do come through and actually do something for the better.

[SivartM]

I suppose now they're going to start digging up the whole country. I'm sure that will be wonderful for the quality of life. And maybe the environment will magically improve!

[Dr. Shane]

I am sure the quality of life will improve. Afghanistan has one of the lowest standards of living in the world. A mining industry will be wonderful for these folks. Drugs bring in a lot of money but it goes into the hands of a few. Mining operations in the country, with good government regulations or labor unions, will spread the wealth much better than the illegal drug operations. This could be a very big foreign relations success for President Obama. Perhaps even be a major part of his legacy. High five for the Big O.

[Nan]

I am sure the quality of life will improve. Afghanistan has one of the lowest standards of living in the world. A mining industry will be wonderful for these folks. Drugs bring in a lot of money but it goes into the hands of a few. Mining operations in the country, with good government regulations or labor unions, will spread the wealth much better than the illegal drug operations. This could be a very big foreign relations success for President Obama. Perhaps even be a major part of his legacy. High five for the Big O.

Excuse my cynicism Shane....I would very much doubt that if the commodoties are mined, it would do much for the standard of living of the common people. "Good government regulations" would be great - if possible - but I do not think it is how things function in that part of the world. (I lived in the general area for several years.)

[SivartM]

That's what I was thinking.

[Dr. Shane]

"Good government regulations" would be great - if possible - but I do not think it is how things function in that part of the world.

You underestimate the influence of President Obama.

I have seen examples of mining and manufacturing make a big difference in parts of Latin America. Of course that is not to say it will make a difference in Afghanistan. That issue really depends a lot on their government.

[Nan]

Shane I do not think the influence of President Obama will have any major effect on an entrenched way of life in Afghanistan.

As I said, please excuse my cynicism.